What Analysts Are Saying After Urban Outfitters Crushed Earnings
Urban Outfitters saw an incredible response following its fiscal second-quarter financial results. Most expected this struggling retailer to tank, but it surprised analysts and investors.
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The retail industry has been in turmoil this year, and as more companies are reporting, it doesn’t seem to be getting any better. However, Urban Outfitters Inc. (NASDAQ: URBN) saw an incredible response following its fiscal second-quarter financial results. Most expected this struggling retailer to tank on this earnings report, but it surprised analysts and investors, bouncing off a multiyear low.
24/7 Wall St. has included some highlights from the earnings report, as well as what a few analysts are saying after the fact.
The retailer said that it had $0.44 in earnings per share (EPS) and $872.9 million in revenue, compared with consensus estimates from Thomson Reuters of $0.37 in EPS and revenue of $861.76 million. The same period of last year reportedly had EPS of $0.66 and $890.57 million in revenue.
Comparable retail segment net sales, which includes the comparable direct-to-consumer channel, decreased 4.9%.
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By brand, comparable retail segment net sales increased 2.9% at Free People, but decreased 4.0% at the Anthropologie Group and 7.9% at Urban Outfitters. The decline in comparable retail segment net sales was due to negative retail store sales, which was partially offset by continued sales growth in its direct-to-consumer channel.
Here’s what analysts had to say in the aftermath:
- Merrill Lynch reiterated a Buy rating and raised its price target to $24 from $22.
- KeyCorp has a Buy rating with a $26 price target.
- Jefferies has a Buy rating and raised its price target to $25 from $23.
- Goldman Sachs has a Sell rating but raised its price target from $16 to $18.
- Robert Baird has a Buy rating with a $22 price target.
- RBC has a Sector Perform rating and raised its price target to $21 from $17.
- Telsey Advisory Group has a Market Perform rating and raised its target from $20 to $22.
- Oppenheimer reiterated a Hold rating.
Shares of Urban Outfitters were last seen up about 20% at $20.22 on Wednesday, with a consensus analyst price target of $19.77 and a 52-week range of $16.68 to $21.31.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
